JSW Group and POSCO to Establish Greenfield Steel Facility in Odisha
Odisha Chief Minister Mohan Charan Majhi has announced that JSW Group, in collaboration with South Korean steel giant POSCO, will be setting up a greenfield steel facility in his home district of Keonjhar. This development comes after several discussions and roadshows held during the Make-in-Odisha conclave.
Moving Forward After Speculation
There has been much speculation about the location of the joint venture between JSW Group and POSCO. However, Chief Minister Majhi has now made it official that Keonjhar will be the site for the steel plant. This decision is in line with the district’s abundance of mineral reserves.
During his visit to Keonjhar to celebrate Diwali, Chief Minister Majhi revealed that discussions about the steel plant took place during roadshows for the Make-in-Odisha conclave in Delhi and Mumbai. This shows the diligence and effort put into ensuring the establishment of this project in Odisha.
A Partnership Set in Motion
The direct result of these discussions and efforts is a Memorandum of Understanding (MoU) signed between JSW Group and POSCO. The MoU was signed on October 29th at JSW Group’s corporate headquarters in Mumbai, with key figures such as JSW Group Chairman Sajjan Jindal and POSCO Chairman Chang In-hwa present.
The integrated steel plant is planned to have an initial capacity of 5 million tonnes per annum. This sizeable capacity demonstrates the ambition and scale of this venture, with potential for further expansion in the future.
Exploring Collaborations in New Industries
In addition to the steel plant, the partnership between JSW Group and POSCO will also explore collaborations in other sectors. One area of interest is battery materials for electric vehicles (EVs), aligning with the current global trends towards sustainable transportation.
As EVs become more prevalent, the demand for battery materials will significantly increase. By exploring this avenue, JSW Group and POSCO can position themselves as prominent players in the renewable energy market. Additionally, this partnership will address the captive energy needs of the proposed steel facility.
Earmarked Land Parcels for the Project
The Odisha government has set aside two land parcels in Keonjhar to support the establishment of this project. The first parcel, spanning 2,500 acres, is located near Odisha Tea Plantation Ltd in the Taramakant area under the Banspal block. The second parcel consists of a 1,956-acre site in Patna, initially reserved for steel major ArcelorMittal.
Thus, not only will this project boost the steel industry in Odisha, but it will also provide employment opportunities and further development in Keonjhar. With the land already earmarked, the project can move ahead swiftly.
A Renewed Effort by POSCO in Odisha
This partnership signifies POSCO’s renewed efforts to establish a significant presence in Odisha. The previous attempt to set up a 12 million tonnes steel mill in Paradip faced numerous obstacles, including protests and regulatory challenges, which resulted in its abandonment.
Now, with the establishment of this greenfield steel plant in Keonjhar, POSCO aims to overcome previous hindrances and leverage Odisha’s mineral wealth for mutual benefits. This project is a symbol of POSCO’s commitment to Odisha and its economic growth.
With the combined expertise and resources of JSW Group and POSCO, this joint venture promises to impact the steel industry in Odisha positively. The development of a greenfield steel plant along with collaborations in emerging industries sets the stage for a prosperous future for the region, fostering economic growth and employment opportunities.
